year in all industrial lines, added to which a 

 prospective heavy crop will bring into being that 

 confidence which has made of Western people 

 such good builders in the past. 



The Canadian Pacific Annual Report 



The Canadian Pacific Railway Company 

 earned equivalent to 11.4 per cent, on its 

 $260,000,000 common capitalization for the 

 year ending December 31st, 1920. 



This compares with 10.8 per cent, in 1919; 

 10. 97 per cent, in 1918; 15. 89 in 1917, and 16.76 

 per cent, in 1916. 



The increase in the percentage, which takes 

 into consideration the inclusion of the special 

 income, is accounted for more by the latter item 

 than by earnings from the railway and lake 

 steamers only, which showed a reduction from 

 the preceding year in which the Company began 

 issuing statements for a fiscal year ending 

 December 31. 



Last year, for example, earnings on the 

 common stock, outside of special income, 

 equalled 7.17 per cent.; in 1919, 7.32 per cent.; 

 in 1918, 7.85 per cent.; and in 1917, 11.78. In 



1919, earnings from special income equalled 

 3.48 per cent., against last year's 4.22, the 

 latter incidentally being the largest in the periods 

 mentioned above. 



Gross earnings of the railway last year were 

 the largest in its history, totalling $216,641,349, 

 against $176,929,060 the preceding year, and 

 $157,537,698 in 1918. Operating expenses at 

 $183,488,305, however, showed an almost cor- 

 responding increase, and with an increase of over 

 $600,000 in fixed charges, and deducting the 

 usual $500,000 pension fund reserve, the balance 

 left for dividend distribution amounted to 

 $21,877,635, about $393,891 down from the 

 preceding year. 



After dividends, a surplus of $450,359 was 

 left, compared with $844,250 the preceding year, 

 and $2,203,621 in 1918. 



Special income at $10,966,448 showed an 

 increase of over $1,900,000, and after dividends 

 of 3 per cent, had been deducted and the balance 

 added to previous surplus the present surplus 

 at credit of special income account amounts to 

 $18,580,292. 



Following are the earnings of the enterprise 

 for the past four years: 



1920 



1919 



1918 



1917 



$152,389,334 

 105,843,316 



$ 46,546,018 

 10,229,143 



$ 36,316,875 

 500,000 



$ 35,816,875 

 " 1,968,683 



$ 33,848,192 

 3,227,276 



$ 30,620,916 

 18,200,000 



Net surplus for year $ 450,359 $ 844,250 $ 2,203,622 $ 12,420,916 



*Net earnings commercial telegraph, January and February, transferred to special income account. 



fNet earnings of coastal steamers, commercial telegraph and news department transferred to special income account. 



SPECIAL INCOME ACCOUNT 



1920 1919 1918 1917 



Special income $10,966,448 $ 9,049,342 $ 8,128,751 $10,713,299 



Dividends 7,800,000 7,800,000 7,800,000 7,800,000 



Balance $ 3,166,448 $ 1,249,342 $ 328,751 $ 2,913,299 



Previous balance 15,413,844 14,164,502 13,835,751 10,922,452 



Spec. Inc. act. surplus $ 18,580,292 $ 15,413,844 $ 14,164,502 $ 13,835,751 



87 



